“This is an important milestone for Facebook because it's the first time we've ever acquired a product and company with so many users. We don't plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.”

Instagram is one of the most downloaded iPhone applications, with more than 30 million users. It recently unveiled a version for the Android phone.

Kevin Systrom, the CEO and co-founder of Instagram, assured users that the acquisition won’t lead to the app’s demise. In a post on the Instagram blog, Systrom wrote:

“It’s important to be clear that Instagram is not going away. We’ll be working with Facebook to evolve Instagram and build the network. We’ll continue to add new features to the product and find new ways to create a better mobile photos experience.

“The Instagram app will still be the same one you know and love. You’ll still have all the same people you follow and that follow you. You’ll still be able to share to other social networks. And you’ll still have all the other features that make the app so fun and unique.

“We’re psyched to be joining Facebook and are excited to build a better Instagram for everyone.”